Elon Musk’s X (formerly Twitter) is launching a lawsuit against streaming service Twitch, alleging their advertisers conspired to boycott the social platform. X first filed the complaint in August against members of the Global Alliance of Responsible Media. The Musk-owned social platform has added Twitch as a defendant in the lawsuit, accusing advertisers of colluding to withhold ad spend. Twitch is owned by Amazon (AMZN).
The addition of Twitch as a defendant to the suit indicates that X has no plans to de-escalate its legal fight against boycotting advertisers. This battle has been ongoing between X and advertisers since this past summer in court. The original complaint from Musk’s X accuses members of the Global Alliance of Responsible Media, a now-discontinued initiative that was led by advertising trade body the World Federation of Advertisers, of illegally colluding to “collectively withhold billions of dollars in advertising revenue” from Twitter. The WFA is still contesting the suit.
Elon Musk Sues Twitch, WFA On Behalf of X
Stephan Loerke, CEO of the WFA, said in August that the advertising body intended to contest the allegations in X’s suit in court. Loerke was confident the outcome of the case would “demonstrate our full adherence to competition rules in all our activities.” However, the latest move against Twitch by Elon Musk and X changes the trajectory of the lawsuit.
Furthermore, Unilever was also a defendant in X’s original complaint. However, the company was dropped from the lawsuit in October. The official “@XNews” account said the companies “had reached an agreement with Unilever” and that it would “continue our partnership with them on the platform,” without specifying the nature of the agreement. Now, Amazon’s Twitch has seemingly taken Unilever’s place in the lawsuit.
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The amended lawsuit alleges that at least 18 GARM members, including Twitch, stopped running ads on Twitter between November and December 2022. “Defendants Mars, Ørsted, Twitch, CVS Health, and other GARM-member advertisers acted in parallel to discontinue their purchases of advertising from Twitter, in a marked departure from their prior pattern of purchases,” the lawsuit reads.
Elon Musk and the X platform have yet to comment on the new lawsuit, nor has Twitch.